The payments service, which could see iPhones used as payment mechanisms in shops, is being touted as a boost for the mobile payments industry.

The company, which is also expected to launch a new iPhone and a smartwatch, has reportedly signed deals with Visa, Mastercard and American Express in relation to the new payments service.

Existing mobile payments services, such as Google Wallet and others based on Near Field Communications technology, have failed to attract ordinary people or high street retailers.

The move is to be announced among a number of new product launches next Tuesday. A much-anticipated upgrade to its iPhone 5 smartphone is set to feature a larger, 4.7-inch screen with a second 5.5-inch model also possible, according to reports. The phone will also have tougher glass, a better camera and more storage capacity.

The iPhone's market share fell to 14.5pc over the last three months, as customers hold off purchasing decisions until the new handset is available. The figures, released by research firm Kantar, also show that Android devices have climbed to 75pc of all phones shipped in Europe in the three months up to July.

In the US, iPhone sales have also fallen, losing 12pc market share.

Apple is also set to launch at least one smartwatch as interest in the nascent 'wearables' sector intensifies. Industry research suggests that 2m smartwatches were sold in the last year.